Estimate how much Income Tax and National Insurance could be deducted from your employment bonus, and how much you could take home.
This calculator helps you estimate how much Income Tax and National Insurance may be deducted from an employment bonus, and how much of the bonus you could take home. It compares your tax position with and without the bonus so you can see the incremental impact.
Employment bonuses are generally treated as employment income for Income Tax purposes. They are added to your annual salary and taxed using the progressive tax bands for your region. This means the tax you pay on your bonus depends on your total taxable income for the year.
No. For Income Tax, a bonus is treated the same as salary — it forms part of your total taxable income. The tax rate applied to the bonus depends on which tax band the bonus falls into based on your combined income.
The tax on a £5,000 bonus depends on your existing salary and available tax bands. If your salary already uses your Personal Allowance and basic-rate band, the bonus may be taxed at a higher rate. This calculator shows you the estimated additional tax based on your inputs.
Employee National Insurance is calculated on employment earnings above certain thresholds. A bonus can increase your total annual earnings and may affect NI contributions, especially if it pushes you above the Upper Earnings Limit. This calculator provides an annual NI estimate.
Your bonus may appear to have a high rate of tax deducted if your employer uses a BR or D0 tax code, or if your bonus pushes your income into a higher tax band. The actual tax liability depends on your total income for the year, and any overpayment may be reconciled through PAYE or Self Assessment.
No. Only the portion of your bonus that falls into the higher-rate band is taxed at the higher rate. The rest is taxed at the basic rate (or other applicable rates). This calculator shows a band breakdown where relevant.
If your total income (salary + bonus) exceeds £100,000, your Personal Allowance may be tapered. This calculator applies the taper where applicable for the selected tax year.
Scottish Income Tax rates and bands are different from the rest of the UK. If you are a Scottish taxpayer, select 'Scotland' in the calculator to apply the correct rates.
Illustrative example only:
Salary: £40,000
Bonus: £5,000
1. Income before bonus: £40,000
2. Income after bonus: £45,000
3. Tax before bonus: £2,486
4. Tax after bonus: £3,486
5. Incremental tax: £1,000
6. Incremental NI: £540
7. Estimated bonus take-home: £3,460
This example uses the same calculation logic as the live calculator for the 2026/27 tax year (England, Standard PA, NI included).
Most bonuses are paid through PAYE, meaning your employer deducts Income Tax and National Insurance before paying you. The tax code used for the bonus may be different from your main tax code, which can affect the amount withheld. This calculator estimates your annual tax liability.
Bonuses are taxed as employment income. They are added to your annual salary and taxed using the progressive Income Tax bands for your region.
Not necessarily. The tax rate depends on your total income. If your bonus pushes you into a higher tax band, the portion in that band is taxed at the higher rate.
It depends on your salary and tax bands. For a salary of £40,000, the additional tax on a £5,000 bonus is approximately £1,000 in this calculator's estimate.
Yes, employee National Insurance is calculated on employment earnings, including bonuses, above certain thresholds.
Your bonus may have been taxed using a BR or D0 tax code, or it may have pushed your total income into a higher tax band. Your annual tax liability may be reconciled through PAYE or Self Assessment.
If your total income (salary + bonus) exceeds £100,000, your Personal Allowance may be tapered. This calculator applies the taper where applicable.
No. Only the portion of the bonus that falls into the higher-rate band is taxed at that rate. The rest is taxed at the basic rate.
Yes, most bonuses are paid through PAYE, with Income Tax and National Insurance deducted by your employer.
Yes, Scottish Income Tax rates and bands are different. Select 'Scotland' in the calculator to see the correct estimate.
No. This is an independent tool for estimation purposes only. Always check with HMRC or a tax professional for accurate advice.
Disclaimer: This calculator provides an estimate only. It is not official HMRC software and does not constitute tax advice. Actual PAYE deductions can differ, payroll timing can affect deductions, bonuses may be processed differently by employers, National Insurance can depend on payroll circumstances, other income and tax adjustments may affect final liability, and Scottish tax rules differ.
Author: Adnan Ahmed
For a broader estimate of your annual tax liability, use our UK Income Tax Calculator. If you want to understand deductions from employment income, use our UK Tax Deduction Calculator.
You may also find our UK PAYE Tax Calculator, UK Tax and NI Calculator, and UK After Tax Calculator useful.
For broader tax rate information, visit SmartTaxCalculator.com.